PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can
be made of the amount of the obligation. When
the Company expects some or all of a provision to
be reimbursed, for example, under an insurance
contract, the reimbursement is recognised as a
separate asset, but only when the reimbursement is
virtually certain. The expense relating to a provision is
presented in the Statement of Profit and Loss net of
any reimbursement. Provisions are not recognised for
future operating losses.

Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. The discount rate used to
determine the present value is a pre-tax rate that
reflects current market assessments of the time value
of money and the risks specific to the liability. The
increase in the provision due to the passage of time is
recognised as interest expense.

As a policy, the company is regularly accessing
the liability arising due to delay in fulfillment of
the obligation against advance licenses taken for
duty free import of the goods / various investment
related schemes and required provisions are carried
out in the books.

Contingent Liability is disclosed in the case of:

> A present obligation arising from the past events,
when it is not probable that an outflow of
resources will be required to settle the obligation;

> A present obligation arising from the past events,
when no reliable estimate is possible;

> A possible obligation arising from the past
events, unless the probability of outflow of
resources is remote.

Contingent liabilities are not provided for and if
material, are disclosed by way of notes to accounts.
Contingent assets are not recognized in financial
statements. However, the same is disclosed, where an
inflow of economic benefit is probable.

1.20 LEASES

The Company assesses whether a contract contains
a lease, at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right to
control the use of an identified asset for a define
period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use
of an identified assets, the Company assesses whether:

(i) the contact involves the use of an identified asset

(ii) the Company has substantially all of the economic
benefits from use of the asset through the period of
the lease and (iii) the Company has the right to direct
the use of the asset.

As a lessee, the Company recognises a right of use
asset and a lease liability at the lease commencement
date. The right of use asset is initially measured at
cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
before the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less
any lease incentives received.

The right of use asset is subsequently depreciated
using the straight-line method from the
commencement date to the earlier of the end of the
useful life of the right of use asset or the end of the
lease term. The estimated useful lives of right of use
assets are determined on the same basis as those of
property and equipment. In addition, the right of use
asset is periodically reduced by impairment losses, if
any, and adjusted for certain remeasurements of the
lease liability.

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily
determined, the Company's incremental borrowing
rate. For leases with reasonably similar characteristics,
the Company, on a lease by lease basis, may adopt
either the incremental borrowing rate specific to

the lease or the incremental borrowing rate for the
portfolio as a whole.

Lease payments included in the measurement of the
lease liability comprise the fixed payments, including
in-substance fixed payments and lease payments
in an optional renewal period if the Company is
reasonably certain to exercise an extension option;
The lease liability is measured at amortised cost using
the effective interest method.

The Company has elected not to recognise right of
use assets and lease liabilities for short-term leases
that have a lease term of 12 months or less and leases
of low-value assets. The Company recognises the
lease payments associated with these leases as an
expense on a straight-line basis over the lease term.
The Company applied a single discount rate to a
portfolio of leases of similar assets in similar economic
environment with a similar end date.

1.21 GOVERNMENT GRANTS

Government grants are recognised when there is
reasonable assurance that the grant will be received
and all attached conditions complied in. When the
grant relates to an expense item, it Is recognised as
Income on a systematic basis over the years that the
related costs, for which it is intended to compensate,
are expensed. When the grant relates to an asset, it is
recognised as an income in equal amounts over the
expected useful life of the related asset.

1.22 SEGMENT REPORTING

An operating segment is a component of the Company
that engages in business activities from which it may
earn revenues and incur expenses, whose operating
results are regularly reviewed by the company's Chief
Operating Decision Maker ("CODM") to make decisions
for which discrete financial information is available.
Based on the management approach as defined in Ind
AS 108 - Operating Segments, the CODM evaluates
the Company's performance and allocates resources
based on an analysis of various performance indicators
by business segments and geographic segments.

1.23 EARNING PER SHARE

Basic Earnings Per Share

Basic earnings per share is calculated by dividing the
net profit or loss for the year attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the year. Earnings
considered in ascertaining the Company's earnings
per share is the net profit or loss for the year after
deducting preference dividends and any attributable
tax thereto for the year. The weighted average number
of equity shares outstanding during the year and for

all the years presented is adjusted for events, such as
bonus shares, other than the conversion of potential
equity shares, that have changed the number of
equity shares outstanding, without a corresponding
change in resources.

Diluted Earnings Per Share

For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable to
equity shareholders and the weighted average number
of shares outstanding during the year is adjusted for
the effects of all dilutive potential equity shares.

1.24 DIVIDEND DISTRIBUTIONS

The Company recognizes a liability to make the
payment of dividend to owners of equity, when
the distribution is authorised and the distribution
is no longer at the discretion of the Company. As
per the corporate laws in India, a distribution is
authorised when it is approved by the shareholders. A
corresponding amount is recognised directly in equity.

1.25 CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents comprise cash and deposits
with banks. The Company considers all highly liquid
investments with a remaining maturity at the date
of purchase of three months or less and that are
readily convertible to known amounts of cash to be
cash equivalents.

For the purpose of presentation in the statement of
cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions

and other short term, highly liquid investments
with original maturities of three months or less that
are readily convertible to known amounts of cash
and which are subject to an insignificant risk of
changes in value.

1.26 STATEMENT OF CASH FLOWS

Cash Flows are reported using the indirect method,
whereby profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing Cash Flows. The cash flows
from operating, investing and financing activities of
the Company are segregated.

1.27 EVENTS OCCURING AFTER THE REPORTING DATE

Adjusting events occurring after the balance sheet
date are recognized in the financial statements.
Material non adjusting events occurring after the
balance sheet date that represents material change
and commitment affecting the financial position are
disclosed in the Director's Report.

1.28 EXCEPTIONS ITEMS

Certain occasions, the size, type or incidence of an
item of income or expense, pertaining to the ordinary
activities of the Company is such that disclosure
improves the understanding of the performance of
the Company, such income or expense is classified as
an exceptional item and accordingly, disclosed in the
notes accompanying to the financial statements.